The Ahmedabad-based Dishman Pharmaceuticals & Chemicals Ltd is acquiring certain divisions of the Manchester-based C6.
The deal involves the UK company's $20 million (about Rs 87 crore) fine chemicals business, technology for eight to 10 speciality compounds and the full manufacturing equipment. However, the acquisition cost is not yet known.
The acquisition, through Dishman's European subsidiary Dishman Europe, is an entirely foreign currency transaction, funded by the internal accruals of the European subsidiary, said Dishman Pharma managing director Janmejay Vyas.
"The deal will be completed in phases. As the third phase that involves factory machinery is not yet over yet, I can not disclose the total acquisition cost at present," he added.
Dishman plans to shift the equipment to Gujarat to set up a manufacturing base for the products of C6.
The technology acquired includes the one for the molecules for bulk actives pertaining to a nutraceutical which will be developed and manufactured for Nuscann Ltd of the UK. Incidentally, Dishman has signed a product sourcing agreement with Nuscann.
Dishman will manufactured and market these products globally. "Dishman has already appointed two senior executives of C6 to oversee the market operations in Europe," Vyas said.
As Dishman wanted to shift the manufacturing base of these products to its new plants in Gujarat, the technologies and equipment will be imported to India, he said.
In addition, Dishman Pharmaceuticals also has plans to set up a bulk drug plant in China. The company has already invested Rs 45 crore (Rs 450 million) there for land. The construction of the plant would start shortly.
"Once the proposed plant in China is ready, we may shift most of our non-GMP (good manufacturing practice) products to this plant from the Indian facility. We aim at cutting cost of production substantially using the industry incentives and power subsidies in China," Vyas said.
